AME finds buyers at key support level
AMETEK Inc. (AME) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AME ended the month 4.34% higher at 93.25 after losing $0.65 (-0.69%) today, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AME as at Jul 31, 2020):
Friday's trading range has been $2.05 (2.2%), that's above the last trading month's daily average range of $1.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AME. Prices continued to consolidate within a tight trading range between 91.48 and 94.66 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Hanging Man which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on July 15th, AME lost -0.53% on the following trading day.
After trading down to 91.48 earlier during the day, AMETEK bounced off the key technical support level at 92.34 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 94.66 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for AMETEK. Out of 462 times, AME closed higher 57.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.44% with an average market move of 0.79%.